What happened
Shares of MasTec (NYSE: MTZ) were falling on Friday after the engineering and construction company reported quarterly results that didn't meet investor expectations. As of midafternoon today, the stock was down by nearly 12%.
So what
After market hours Thursday, MasTec announced that it earned $1.8 billion in its fourth quarter, almost 11% higher than in the same period of 2020. Going in the opposite direction, though, was non-GAAP (adjusted) net income, which declined to just under $100 million ($1.35 per share) from the year-ago profit of $128 million.
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This meant a mixed quarter for MasTec, as the average analyst estimate for revenue was slightly under $1.9 billion, but the collective expectation for adjusted per-share earnings was only $1.29.
Out of the company's four main business segments, three saw revenue increases during the quarter. The most significant in terms of sales, communications, enjoyed a 20% increase in revenue to almost $682 million. Power delivery saw the most dramatic change, more than doubling its take to $285 million. But the one laggard, oil and gas, suffered a steep 44% decline to $335 million.
Now what
MasTec also proffered first-quarter and full-year 2022 guidance. For the former period, it's expecting to match the fourth-quarter revenue figure of $1.8 billion, while posting a GAAP loss of roughly $44 million. It did not provide an estimate for adjusted net loss.
The bottom-line shortfall is expected because of numerous negative factors including project delays and integration costs related to the company's December purchase of utility services provider Henkels & McCoy. That deal was valued at $600 million.
As for the full year, MasTec is forecasting around $9.95 billion in revenue, with GAAP net income landing at $273 million.
The quarterly revenue projection doesn't meet analyst estimates, although the opposite is true for the annual estimate. On average, professionals following the stock are expecting a top line of $2.1 billion for the first quarter, and $9.83 billion for the full year.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends MasTec. The Motley Fool has a disclosure policy.
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